The energy industry faces significant short-term instability but remains hopeful about the future, according to DNV’s annual Energy Industry Insights survey.
Based on responses from 1,100 senior energy professionals, the report highlights that political risk is now seen as the biggest barrier to growth.
Confidence in the pace of the energy transition has dropped sharply, with only 55% believing it is accelerating, compared to 72% last year.
But Lucy Craig, Director of Growth, Innovation and Digitalization at DNV, noted, “Nearly 70% of energy professionals remain confident in the industry’s growth outlook.”
However the survey reveals that 51% of respondents are concerned the energy transition could negatively impact some communities, citing risks such as economic displacement and unequal access to clean energy.
Respondents emphasised the need for affordable technologies and innovative funding models to ensure the transition benefits all.
Ditlev Engel, CEO Energy Systems at DNV, said, “A successful energy transition is not impossible but the urgency to accelerate action has never been greater.”
He added, “Despite this uncertainty, our industry remains focused on the long-term vision. As a whole, we are committed to building a resilient, low-carbon energy system that minimises emissions, is affordable and sustainable, while meeting the world’s growing energy demand.”
Short-term caution is particularly evident in the renewables sector, with only 39% of businesses planning to increase investment over the next year.
However, optimism remains, driven by megatrends like electrification, climate action urgency and technological advancements.
Aging infrastructure is also a major concern, with over three-quarters of power sector professionals citing outdated grids as barriers to renewables.
And 96% called for urgent investment in grid modernisation to support the future energy system.
